France to launch development projects worth €110m

France is preparing to launch two development projects in Egypt worth a total of €110m, according to Egypt’s ambassador in Paris.

Ambassador Mohamed Mustafa Kamal announced that the two projects would target the agricultural sector and development of informal areas, according to a Ministry of Foreign Affairs statement.

The first project, valued at €30m, is expected “to support small and medium enterprises operating in the agricultural sector.” The second project, worth €80m, will aim to create “job opportunities for the residents of slum areas” using “microfinance projects” through Egypt’s Social Fund for Development. The project will also aim to formalise existing informal projects in these areas, according to the ministry.

The money for the projects will come through the French government’s implementing development partner, the French Agency for Development (AFD). The AFD began working in Egypt in 2004 and had in the past run projects targeted at improving transport, sanitation, pollution and conservation.

AFD was unavailable for further comment on the newly announced projects.

Minister of Foreign Affairs Nabil Fahmy travelled to Paris in September and assured his French counterpart Laurent Fabius of the interim government’s commitment to the transitional roadmap set out by the armed forces on the occasion of the ouster of Mohamed Morsi as president.

In October Fabius affirmed “the need to ensure [Egypt’s] political and economic stability.” Kamal said that the launch of these new projects “is in principle an indication of restoring a favourable climate for further economic growth and job creation.”